Sports Car Co.
Taming the Long Tail of Spare Parts Demand
ChallengeThis sports car company’s management set a challenging target of raising the spare parts service level from 70% to 90% in two years, without increasing inventory levels.
ResultsMore than 20,000 items managed by a single planner Service level was improved by 32% while reducing inventory and increasing product range by 20%
Project & Objectives
ToolsGroup’s SO99+ was selected when this automotive manufacturer identified the need for an advanced planning system for its Spare Parts Division, whose central warehouse serves worldwide demand.
Their goal was service level excellence. Management set a challenging target: raise the spare parts service level from 70% to 90% within two years, without increasing inventory levels.
The requirement called for a system with the following characteristics:
- Integrated demand modeling, inventory and service levels management
- Ability to correct the warehouse inventory mix to address service
- Requirements planning capabilities
- Compliance with legacy transaction systems and portability to other systems.
The SO99+ project involved one resource from the customer (a planner) and two from ToolsGroup (project manager and consultant).
In less than two years, despite a 20% increase in the product range, the Spare Parts Division service level was improved by 32% while reducing inventory.
SO99+ was installed and interfaced with an AS400-based legacy system. Following system tuning, during the first six months, with only a single planner, the tuned system generated monthly replenishment plans for over 20,000 items, most of them slow movers.
Implementation of a new ERP system started shortly afterward. The interface to SO99+ was moved to the new ERP without any system downtime.
Results & Benefits
In less than two years, despite a 20% increase in the product range, the Spare Parts Division service levels was improved by 32% while reducing inventory.
About Sports Car Co.
This automotive company, with one of the best known and most highly respected brands in the world, has manufactured high-end sports and GT cars for more than 50 years.↓ Download PDF